Tide Water Oil Co (I) Ltd Management Discussions

Economic overview

Global economy¹

The global economy grew by 3.3% in CY 2024, showing resilience amid geopolitical tensions, trade disruptions and shifting monetary policies. Inflation, which was 6.6% in CY 2023, has since moderated to 5.7 % in CY 2024. This decline can be largely credited to the decisive monetary policies implemented by central banks and an increase in energy supply that helped stabilise prices.

Emerging markets and developing economies witnessed a growth rate of 4.3%, outpacing the 1.8% growth recorded by advanced economies. This strong performance was driven by robust domestic demand, increased foreign investments and the continued expansion of critical sectors such as manufacturing and technology.

Outlook

The global economy is projected to maintain steady momentum, with GDP expected to grow by 2.8% in CY2025 and 3.0% in 2026, supported by accommodative monetary policies and a continued decline in inflation. Inflation is forecasted to ease to around 4.3% in CY 2025 and further to 3.6% in CY 2026, creating a more positive environment for consumer spending. While geopolitical tensions and structural challenges in major economies such as China present downside risks, the outlook remains broadly resilient due to sustained government support and a focus on medium-term fiscal consolidation. Despite headwinds from recent U.S. tariff measures impacting international trade, the global economy is showing strength through its deep interconnectivity. In response to shifting dynamics, both governments and corporations are actively optimizing supply chains and leveraging technological advancements to drive long-term growth and economic stability.

Indian economy

India remains a significant contributor to global economic growth, with its GDP expected to grow by 6.5% in FY 2025?. This growth is supported by a strong macroeconomic fundamental, rising foreign investments and proactive government initiatives aimed at enhancing infrastructure and boosting consumer demand. The countrys dynamic digital transformation and growing middle class also strengthen its economic landscape.

The automotive and industrial sectors are poised to benefit significantly from the countrys economic momentum. As India expands its manufacturing capabilities, there will be a rise in demand for industrial lubricants, particularly with the increasing automation and technological advancements across industries such as automotive and manufacturing.

The manufacturing sector, supported by the Production Linked Incentive (PLI) schemes, continues to drive domestic production and employment generation. Rapid urbanisation and a growing middle class are further increasing consumer demand, while investments in green energy are advancing the countrys sustainable development goals. The governments emphasis on infrastructure development and tax reforms is creating a more favourable business environment, spurring consumer spending and improving Indias competitiveness in sectors such as automotive and manufacturing.

Outlook

The Indian economy is poised for sustained growth, bolstered by tax relief measures that boost disposable incomes for the middle-class. As retail inflation begins to ease, consumer spending is expected to rise, further strengthening the economy The governments focus on deregulation, infrastructure development and encouraging private sector involvement will be vital for sustaining this momentum. Sectors such as retail and digital services are set for significant growth as rising incomes and enhanced connectivity drive demand. With continued investments and government spending, Indias economic prospects remain strong in the years ahead.

Outlook

Lubricants play a vital role in the automotive sector by reducing friction, ensuring smooth operation and enhancing the longevity and efficiency of vehicles. As the global demand for automobiles continues to grow, especially in developing economies, lubricant consumption has witnessed a parallel rise. The Asia-Pacific region, in particular, has emerged as a major contributor to this growth, driven by increasing vehicle ownership, rapid urbanisation and ongoing industrialisation across countries like China, India and Southeast Asia.

The automotive industry, the global lubricants market is also benefiting from expansion in other sectors such as aviation and marine transportation. The growing preference for synthetic lubricants, which offer superior performance and longer service intervals, is further fuelling demand. In response to tightening environmental regulations and a global shift towards sustainability, lubricant manufacturers are increasingly investing in the development of bio-based and eco-friendly alternatives, aligning with broader environmental goals and corporate ESG commitments.

In addition, technological advancements are playing a pivotal role in shaping the future of the lubricants industry. The integration of smart lubricant management software, predictive maintenance practices and expansion of digital and online sales channels are transforming traditional business models. These innovations not only improve operational efficiency but also help end-users optimise lubricant usage and reduce downtime. As a result, the lubricants market is poised for steady and sustained growth, underpinned by evolving industry needs and a growing emphasis on sustainability and digital transformation.

Industry overview

Global lubricant market³

The growth of the global lubricants sector is driven by the increasing demand for high-performance lubricants in advanced automotive engines, industrial machinery and the expanding marine sector. This growth is supported by technological advancements in lubricant formulations, particularly the development of synthetic and bio-based lubricants.

In 2025, the global lubricants market is estimated at USD 150 - 175 billion. It is projected to expand to USD 180 - 204 billion by 2030, reflecting a compound annual growth rate (CAGR) of 2 - 4.5% during the forecast period CY 2025-2030.⁴

Innovative lubricant formulations are providing superior performance while addressing environmental concerns. Advancements in base oil quality have enabled manufacturers to develop lubricants that offer greater stability and lower emissions, contributing to a more sustainable industrial landscape.

Opportunities and threats

The lubricants industry is evolving rapidly, with brand building, innovation and premiumisation emerging as key drivers of growth and differentiation. In a market where technical specifications like viscosity offer limited room for distinction, strong branding plays a pivotal role in influencing consumer preference, especially in commoditised segments such as engine oils. Veedol, with its rich legacy and strong brand equity, is uniquely positioned to leverage these trends. By focusing on high-performance synthetic lubricants that meet modern consumer expectations and align with evolving environmental standards. Veedol continues to strengthen its competitive advantage. The global shift towards stricter emission norms and improved fuel efficiency is accelerating demand for advanced synthetic formulations an area where Veedol is already investing through continuous innovation and a robust portfolio of premium products. While the company operates within a globally integrated supply chain, it views this as an opportunity to enhance its agility through strategic sourcing and resilient supply chain planning, thereby mitigating challenges such as forex volatility and import dependencies. This proactive approach positions Veedol for sustained growth and leadership in the next phase of the lubricants industry.

Emerging markets

Asia, particularly China and India, is experiencing rapid industrialisation and urbanisation, driving higher demand for industrial and automotive lubricants. Increased infrastructure projects and rising vehicle ownership in these regions are inspiring market growth.

Development of Bio-Based lubricants

There is an increasing demand for environmentally friendly lubricants due to heightened awareness of environmental sustainability and renewable solutions. Bio-based lubricants, being biodegradable and less toxic, are gaining traction across various sectors. Investing in the development of bio-based lubricants can meet this growing demand and align with global sustainability trends.

Technological advancements

The growing demand for sustainable and high-efficiency lubricants is driving market growth for advanced bio-based and synthetic formulations. These eco-friendly products offer improved performance while reducing environmental impact.

Supplying high-performance lubricants for advanced machinery

The industrial sectors increasing automation and technological advancements necessitate high-performance lubricants to optimize machinery efficiency and extend operational life. Providing specialized lubricants tailored for advanced industrial applications can address this need and capture a segment of the industrial lubricants market.

Regulatory hurdles

Stricter regulations on lubricant production and disposal can hinder market growth, increasing costs and operational complexities for manufacturers.

Dependence on crude oil prices

Fluctuations in crude oil prices can affect the cost and supply of raw materials, affecting profitability and posing challenges for lubricant manufacturers.

Environmental concerns

Lubricant disposal poses environmental risks, leading to the demand for sustainable solutions that minimise ecological impact.

Global lubricants market trends

The global lubricants market is experiencing several transformative trends

Shift towards sustainability

Theres a growing emphasis on developing environmentally friendly lubricants derived from renewable sources. Bio-based lubricants, are gaining traction due to their biodegradability and reduced environmental impact. This trend aligns with global sustainability initiatives and regulatory pressures

Technological advancements

Continuous innovations have led to the development of high-performance synthetic lubricants and advanced additives. These formulations offer superior viscosity, thermal stability, and oxidation resistance, resulting in enhanced equipment efficiency and longevity

Digitalization

The incorporation of digital technologies enables real-time monitoring of equipment health, predictive maintenance and optimized lubricant usage. This integration enhances operational efficiency and reduces downtime across various industries.

Impact of Electric Vehicles (EVs)

The rising adoption of EVs is reshaping lubricant demand. While EVs require fewer traditional lubricants, theres an increasing need for specialized lubricants for components like bearings and gears. This shift presents both challenges and opportunities for lubricant manufacturers.

Indian lubricant market

India stands as the third-largest consumer of automobiles and lubricants and is among the top five lubricant markets globally. Despite facing multiple challenges over the past year, the Indian lubricant industry has maintained strong momentum and growth prospects. Technological advancements have played a key role in driving innovation, leading to the creation of advanced lubricant formulations that deliver better oxidation stability and superior wear protection

The Indian lubricants sector is experiencing continued growth. The industry is estimated at USD 7.5 billion in FY 25 and is expected to reach USD 9.7 billion by 2030 exhibiting a CAGR of 3 - 4% during the forecast period.⁵ This growth is driven by factors such as the increasing adoption of complex machinery across various industries, rising demand from the automotive sector, and the expansion of Indias manufacturing sector. Industrial lubricants play a crucial role in reducing friction and wear in machinery, boosting operational efficiency, and minimizing downtime, making them essential for various end-use industries.

Government initiatives such as ‘Make in India and substantial investments in infrastructure are bolstering the manufacturing and heavy industries sectors. This surge necessitates high-quality lubricants to ensure optimal machinery performance and longevity. The development of industrial parks and corridors across various regions is expected to enhance logistical efficiency, offering lubricant companies new avenues for market expansion and improved distribution networks

Outlook

The Indian lubricant industry is set for steady growth, driven by factors such as urbanization, infrastructure development and rising consumer incomes. The commercial automotive lubricant segment is evolving, with increasing demand for higher-quality products due to new vehicle additions and supportive government policies. At the same time, the growing adoption of electric vehicles (EVs), especially in two-wheelers and small commercial vehicles, presents both challenges and opportunities. While EVs may reduce traditional lubricant demand, they create new markets for specialized EV fluids and advanced synthetic lubricants that offer superior performance and compatibility.

In this dynamic environment, the Company is focused on expanding its presence across different price segments and geographies, strengthening its workshop network and enhancing its premium brand portfolio. The personal mobility segment is expected to remain robust, supported by rising vehicle ownership, while the commercial and industrial sectors stand to benefit from increased infrastructure spending and industrial growth. Strategic investments in automation, product innovation and digital technologies position the Company well to sustain value creation and meet evolving stakeholder expectations.

The lubricant sector in India is likely to benefit from ongoing technological advancements, growing adoption of synthetic and bio-based lubricants and a rising emphasis on energy efficiency and environmental sustainability. Digitalization and predictive maintenance practices are expected to further increase demand for sophisticated lubricants, helping industries optimize operations and minimize downtime. These trends show a positive outlook for the industry, driven by innovation and evolving customer needs.

Opportunities and threats

The Indian lubricant industry continued to benefit from favorable policy and regulatory tailwinds, including the enforcement of BS-VI norms, tighter emission standards and improved fuel quality, which collectively drove demand for high-performance and synthetic lubricants. This shift aligned well with a strategic focus on BS-VI compliant product offerings, especially in the commercial vehicle and tractor oil segments, supporting growth amid a revival in industrial and agricultural activity. The strength of the bazaar trade remained a critical volume and margin driver, where Veedols umbrella brand strategy anchored by its flagship brand VEEDOL and complemented by sub-brands like Prima and Take Off enhanced its visibility and consumer trust. Despite heightened competition from OEM-branded lubricants, it continued to reinforce its market position through sustained investments in digitization, dealer engagement and loyalty initiatives, ensuring a robust and responsive distribution network across urban and rural markets.

Indian lubricant market trends

Growth driven by automotive sector

The Indian lubricant market is significantly influenced by the automotive industry, which accounts for a substantial share of lubricant consumption. The continuous rise in vehicle sales and production, particularly in two-wheelers and passenger vehicles, is a primary factor driving demand.

Technological advancements

There is a notable shift towards high-performance lubricants, including synthetic and bio-based options. Innovations in lubricant technology are essential to meet the evolving needs of modern engines and machinery, focusing on efficiency and environmental sustainability.

Industrial expansion

The growth of various industrial sectors, including manufacturing and power generation, is increasing the demand for industrial lubricants. As industries expand and modernize their machinery, the need for specialized lubricants that ensure optimal performance is becoming more critical.

Regulatory influence

Stricter environmental regulations are prompting manufacturers to invest in eco-friendly lubricants. This trend is pushing the market towards sustainable practices, with a growing emphasis on reducing emissions and improving safety through the use of bio-lubricants.

Company overview

Veedol Corporation Limited (formerly Tide water Oil Co. (India) Limited), the owner of the Veedol brand, is one of the leading manufacturer and marketer of high-quality lubricants, offering advanced engine oils for a wide range of vehicles including passenger cars, two and three-wheelers, heavy commercial vehicles, buses, tractors and off-highway vehicles. Serving both automotive and industrial segments since 1928, the Company has established a strong legacy in the lubricant industry. While its headquarters is located in Kolkata, the Company operates a Corporate Office in Mumbai and regional offices in New Delhi and Chennai, supporting its extensive presence across India and operations in different countries worldwide.

Veedol has built a robust distribution infrastructure with a vast number of distributors network, retail outlets and workshops, enabling it to effectively reach a broad customer base. To support product innovation and performance, the Company maintains two in-house R&D centres located in Navi Mumbai and Chennai, both of which are recognized by the Department of Scientific and Industrial Research (DSIR), Government of India. This strong blend of expansive reach, technical expertise, and a longstanding market presence has positioned Veedol as a key player in the global lubricants market.

Products

Name of the product	Description	Types of products
		• Two-Wheeler Oils
		• Passenger Car Motor Oils
	Automotive lubricants are essential to	• Commercial Vehicle Oils
Automotive lubricants	vehicle performance, reducing friction,	• Tractor Oils
	controlling temperature and protecting engine parts from corrosion and rust.	• Off-Highway Oils
		• Greases
		• EV Fluids
		• Gear and Transmission Oils

Company outlook

The Company continues to be recognized as a trusted brand, known for offering strong value for money in the lubricant industry. Looking ahead, the Company plans to capitalize on its strategic roadmap and investment initiatives to achieve its long-term growth objectives. The focus will remain on driving profitable growth while maintaining a competitive edge in the industry. Additionally, Veedol is set to expand its presence in international markets by leveraging its network of distributors and franchise partners. This global expansion is expected to diversify its revenue streams and enhance its market reach, thereby reinforcing its position both domestically and internationally.

Human Resource

The Company considers its human resources to be a key driver of its success. As of FY 2025, it employed a total of 483 permanent staff, including factory workmen. Emphasising the recruitment of suitable talent, the Company aims to enhance innovation, productivity and operational efficiency. It provides specialised training through a structured modular battery learning approach, offering employees targeted and consistent development opportunities. Throughout the year, the Company maintained a positive and healthy work environment. Charter of Demands (COD) were successfully executed at the Silvassa and Turbhe sites. Additionally, during the year, the HR department fully digitised its operations, marking a major milestone. No other significant developments in human resources occurred during the reporting period.

Manufacturing and R&D

Veedol Corporation Limited is a prominent player in the lubricant industry recognized for its technological innovations. The Company has developed cutting-edge solutions, including co-branded products for OEMs, advanced hydraulic oils and high-performance engine oils that meet international standards such as API CK-4+, API CI-4+, API SN, API SM, JASO MA2 and JASO MB. These products are trusted and endorsed by prominent OEMs in India.

The Companys manufacturing operations are supported by two in-house R&D facilities. The Turbhe centre in Navi Mumbai specialises in tribology research and develops lubricants for various applications. Meanwhile, the Oragadam centre near Chennai focuses on creating high-quality greases for automotive and industrial use. Both centres are recognised by the Department of Scientific & Industrial Research under the Ministry of Science and Technology. The Turbhe laboratory, accredited by NABL, holds the prestigious ILAC MRA mark, ensuring international recognition of its test results.

Corporate Social Responsibility (CSR)

In FY 2025, the Companys CSR initiatives were centred around inspiring positive change in local communities. Focus areas included skill development, creating livelihood opportunities, promoting education, advancing healthcare and safety measures and supporting environmental sustainability. Through these initiatives, the Company aimed to improve the well-being of communitymembersandcontributetosustainabledevelopment.

During FY 2024-25, Veedol Corporation Ltd. implemented a portfolio of CSR programmes addressing four key thematic areas: Education and Digital Literacy, Skill Development and Livelihood Promotion, Healthcare Access and Nutrition and Child well-being. The initiatives are summarised thematically below:

Education and Digital Literacy

Computer Shiksha Programme

• Promoted digital literacy among more than 26,000 students across 102 schools in 8 states.

• Facilitated foundational computer skills through a self-paced, video-based learning model.

Child Education Programme, Pune (iTeach RSM School)

• Provided support for quality education for students from low-income families in Pune.

• Enhanced academic outcomes and supported transitions to higher education.

Smart Class Learning Programme, Mumbai (Anand Nagar English Mumbai Municipal School and Maneklal Mehta MPS School)

• Introduced and implemented a smart class environment in both the schools.

• Enhanced student engagement, improved learning outcomes, enabled personalized learning and streamlined administrative processes.

ANKUR Foundational Learning Programme

• Focused on early literacy and numeracy development for first-generation learners.

• Adopted interactive and play-based learning methods to bridge foundational gaps.

Child Education Programmes, West Bengal (Barnoporichoy, Amader Aangina, Amader Pathshala)

• Delivered remedial education, literacy, numeracy, and co-curricular activities to disadvantaged children.

• Facilitated integration into mainstream schooling and promoted holistic child development.

Free Student Hostel Initiative (AIM for SEVA Dayatirtha Chatralayam for Girls)

• Provided safe residential facilities, nutrition, academic support and holistic development for rural and tribal girls.

• Enabled access to education and promoted empowerment through structured residential care.

Child Education Programme, Pune (Parijnanashram Vidyalaya, Karla)

• Provided support for quality education for students from low-income families in Pune.

• Enhanced academic outcomes and supported transitions to higher education.

Skill Development and Livelihood Promotion

Veedol Auto Mechanic Academy (VAMA)

• Provided industry-aligned automotive service and sales training to tribal, rural and underprivileged youth.

• Focused on enhancing employability through certification and placement support.

KARIGARI Programme

• Upskilled grassroots two-wheeler mechanics in BS-VI servicing and diagnostic techniques.

• Enhanced the technical capabilities of independent and workshop-based mechanics.

Livelihood Training on Organic Farming and Semi-Intensive Pisciculture

• Offered vocational training in organic farming techniques and fishery practices.

• Supported sustainable livelihood generation for rural communities.

Livelihood Generation Programme

• Provided sewing machines to the family having a blind wage earner.

• Helped families to earn livelihood and made the same financially stable, improved social status and enhanced skills.

Healthcare Access

Mobile Medical Units (MMUs) at Howrah and Raigad

• Delivered primary healthcare services, diagnostics, medicines and health awareness to underserved rural communities.

• Reached over 28,000 beneficiaries through decentralised mobile outreach.

Eye See & I Work Free Eye Vision Screening Programme

• Conducted comprehensive vision screening for members of underprivileged community, identified refractive errors and provided eyeglasses to individuals in need.

• Identified individuals with serious eye conditions, including cataract and referred them to hospitals for further care.

Nutrition and Child Well-being

BASHA Mid-Day Meal Programme

• Provided nutritional mid-day meals to students at BASHA rural education initiative.

• Improved student health, school attendance, and learning engagement.

The details of the contributions made are provided hereunder:

Project No.	Project Overview	Amount spent for the Project
		(in crores)
1	Veedol Auto Mechanic Academy (VAMA)	0.46
2	Mobile Medical Units (MMU)	0.55
3	KARIGARI Programme	0.43
4	Computer Shiksha Programme	0.13
5	Free Student Hostel Initiative (AIM for SEVA Dayatirtha Chatralayam for Girls)	0.04
6	Child Education Programmes, West Bengal (Barnoporichoy, Amader Aangina, Amader Pathshala)	0.04
7	BASHA Mid-Day Meal Programme	0.04
8	Livelihood Training on Organic Farming and Semi-Intensive Pisciculture	0.02
9	Child Programme, Pune (iTeach RSM School)	0.20
10	ANKUR Foundational Learning Programme	0.03
11	Livelihood Generation Programme	0.04
12	Eye See & I Work Free Eye Vision Screening Programme	0.10
13	Smart Class Learning Programme, Mumbai (Anand Nagar English Mumbai Municipal School and	0.07
	Maneklal Mehta MPS School)
14	Child Education Programme, Pune (Parijnanashram Vidyalaya, Karla)	0.20
	Total	2.351

Financial performance

The details of the financial performance for FY 2025 are reflected in the Balance Sheet and the Statement of Profit and Loss. During the year, the Profit before Tax before exceptional items has increased by 2.67%.

Changes in key financial ratio

The key financial ratios for the FY 2025, compared to the previous financial year, are presented below in accordance with Schedule V (B) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

SL. No	Particulars	FY 2024-25	FY 2023-24	Variance (in %)
i	Debtors turnover ratio	9.23	10.59	-12.84
ii	Inventory Turnover Ratio	3.47	3.86	-10.05
iii	Debt Service Coverage Ratio	16.04	N.A.*	100.00
iv	Current Ratio	3.45	3.15	9.32
v	Debt Equity Ratio	0.03	N.A.*	100.00
vi	Operating Profit Margin (%)	4.50	5.33	-15.42
vii	Net Profit Margin (%)	8.18	7.11	14.95

Risk Management Framework

The Company is exposed to various risks that could affect its operations and profitability, affecting long-term growth. Thus, it becomes necessary for the Company to identify and assess these risks, implement proactive mitigation strategies and make informed decisions that protect against potential losses and support its growth. The Company has been certified under ISO 31000:2018 standard with regard to Enterprise Risk Management practices and undertakes surveillance exercise annually.

Risk and Concerns

Risk	Risk particulars	Mitigation strategies
Industry risk	In the competitive lubricant market, profits can be affected by changes in raw material prices and demand. During economic downturns, industrial activity may slow down, reducing the need for lubricants.	To manage the crude oil variability, the Company has entered into index based term contracts for local procurement and imports. Given its market share, the Company has historically managed the impact of crude price changes. Supplier performance reviews are undertaken on regular basis and operational and financial KPIs are monitored. The Company also continuously monitors competitor activities related to pricing and marketing schemes, macroeconomic trends and OEM market movements. It also tracks vehicle parc data to assess demand and analyse sales channels for customer preferences. It ensures a strong presence through depots at major locations and maintains solid distributor relationships with attractive schemes for retailers and mechanics. Strategic ties with workshops are also pursued.
Research and development risk	Investments in R&D are crucial for the Company to innovate and meet evolving market needs. Failure to develop new products or improve existing ones can result in loss of market share.	The Company closely monitors product category announcements by global bodies such as API, ACEA and JASO. It maintains close liaison with leading additive manufacturers to gain access to the latest technology. Regular OEM visits and discussion on new products are undertaken.
Technology risk	The lubricant industry is advancing with new technologies for production and quality control. The Company must continually upgrade its technological infrastructure to maintain efficiency and product quality. Lagging in technological adoption can result in operational inefficiencies and increased production costs	The Company regularly evaluates competitor product launches, engages with OEMs to track industry trends, and collaborates with suppliers to align product evaluations with technology demands. Customer feedback and application- specific insights are gathered and validated in coordination with additive partners to ensure product relevance and competitiveness.

 

Risk		Mitigation strategies
Credit risk	Extending credit to distributors and customers exposes the Company to the risk of non-payment. Economic challenges can increase default rates, affecting cash flow. Effective credit management policies are essential to mitigate potential financial losses	The Company maintains effective credit management through regular working capital monitoring, monthly sales and operations planning, and analytical tools. It ensures availability of internal accruals and bank credit lines. Frequent meetings with area/state-in-charge and interaction with retailers and mechanics ensure close monitoring. Internal financial controls are regularly reviewed for corrective actions.
Inventory risk	Holding large inventories of lubricants carries the risk of obsolescence, especially if market preferences shift or products become outdated. Excess inventory ties up capital and may lead to increased storage costs. Implementing efficient inventory management systems is vital to balance supply with demand.	The Company mitigates this risk through regular reviews of stock levels that are checked. Internal audits are conducted at regular intervals. Defined inventory levels are integrated with production and delivery timelines and regular rebalancing of slow/ non-moving stock is carried out. Obsolete stock management processes have been established.
Cyber security risk	The Company may face risks from cyber-attacks that could compromise data and disrupt operations	The Company has deployed endpoint security at all points. Hardware firewalls with established policies protect every location. Annual cyber security and VAPT audits are conducted, with daily monitoring and regular asset reviews. Antivirus servers are monitored with auto-alerts. Also, employees are regularly trained via cyber awareness programmes and phishing simulation drills.
Foreign exchange risk	The Company operates in multiple countries, so changes in currency exchange rates can impact its profits. This is especially true when buying raw materials from other countries or selling finished products abroad.	The Company reviews forex exposure regularly, and appropriate hedging processes have been implemented.
Regularity and compliance risk .	The company must comply with various regulations. Non-compliance could result in fines or reputational damage	The Company has digitized its compliance structure. Further to promote awareness, periodic communications and training sessions are conducted. Regular audits are carried out across key functions. Additionally, emerging statutory requirements are continuously tracked to ensure proactive compliance.

Internal Control System

The Company has a comprehensive system of internal controls suited to the nature, scale, and complexity of its operations. These controls ensure the accuracy and completeness of financial statements and the timely preparation of reliable financial information. The Company continually evaluates and enhances these controls to maintain operational efficiency, accuracy of records and risk minimisation.

Cautionary statement

The Management Discussion and Analysis (MD&A) section may contain statements regarding the Companys objectives, projections, estimates and expectations, which could be considered forward-looking statements by applicable securities laws and regulations. The outcomes could be very different from what is stated in these assertions. Demand and supply conditions both domestically and internationally, the cost and availability of essential materials, alterations to tax laws and government regulations, the nations economic development and other relevant factors impacting the Companys business operations are all significant determinants of the Companys operations. The Company disclaims all liability and responsibility for any loss resulting from or related to this report or its contents.

	On behalf of the Board
Place : Mumbai	Durgesh S. Chandavarkar
Date : 28th May, 2025	Chairman